Title
Authorization to Lease City-owned Property Located at 1945 W. Dunlap Ave. to U.S. Vets (Ordinance S-49469)
Description
Request to authorize the City Manager, or his designee, to enter into a lease with U.S. Vets for office and storage space located at 1945 W. Dunlap Ave., Suites 2 and 4. Further request to authorize the City Treasurer to accept all necessary funds in accordance with the terms of the lease.
Report
Summary
The U.S. Vets will lease approximately 3,900 square feet at 1945 W. Dunlap Ave., Suites 2 and 4, for office and storage space for a one-year term with two additional one-year options to extend.
Base rent during the initial term of the lease will be $10 per square foot per year, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division for spaces similar in size and use. Base rent will increase three percent at the beginning of each option period, if extended. The U.S. Vets will be responsible for its pro rata share of common area expenses, and for all costs related to occupancy, use, and maintenance of the suites including but not limited to tenant improvements and related permits, utilities, and the fire alarm system.
The lease will include insurance and indemnification provisions acceptable to the City's Risk Management Division and the Law Department. The lease may be canceled pursuant to Arizona Revised Statutes 38-511 and may contain other terms and conditions deemed necessary by the City.
Contract Term
The initial term of the lease is one year, with two additional one-year options to extend.
Financial Impact
Revenue for the initial one-year term is $39,000.
Location
1945 W. Dunlap Ave., Suites 2 and 4.
Council District 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.